The AIIB’s Launch Sets the Stage for Supply-Side Competition in Development Finance

... the AIIB acts like a financial dictator, its lending power (in terms of equity-to-loan conversion ratio) will sharply decline, eroding its economic influence in the region. Furthermore, if beneficiary nations feel that the conditions offered by the AIIB are unfair, they will simply switch to the ADB or other multilateral development banks. This is yet another virtue of healthy economic competition: if China wants to realize the potential of the AIIB, it needs to be bound by the operational rules of the financial market, as well as its long-term ...